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A cash-generating unit comprises the following assets: GHS'000 Building 700 Plant and equipment 200 Goodwill 90 Current assets 20 1,010 One of the machines, carried
A cash-generating unit comprises the following assets:
GHS'000
Building 700
Plant and equipment 200
Goodwill 90
Current assets 20
1,010
One of the machines, carried at GHS40,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at GHS750,000.
Required:
Compute the impairment loss to be charged to profit or loss for the year. What will be the carrying amount of the assets when the impairment loss has been recognised? (to the nearest GHS'000)
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